Why and When You Should Refinance a Home

Advertisements

4. Get rid of FHA mortgage insurance

In conventional home loans, you can cancel private mortgage insurance, but in many cases the mortgage premium of the Federal Housing Administration you can’t pay on FHA loans.

Only to sell your home or refinance your loan when you’ve accumulated enough equity can you remove the FHA mortgage insurance premiums. Estimate your home value and then subtract your mortgage balance for the home equity calculation.

Advertisements